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8-K - FORM 8-K - CALGON CARBON Corpl42585e8vk.htm
Exhibit 99.1
         
(CALGON CARBON LOGO)
  News Release
 
  Contact: Gail A. Gerono
 
                 412.787.6795  
 
 
  www.calgoncarbon.com
CALGON CARBON ANNOUNCES FIRST QUARTER RESULTS
PITTSBURGH, PA — May 3, 2011 — Calgon Carbon Corporation (NYSE: CCC) announced results for the first quarter ended March 31, 2011.
The company reported net income of $8.5 million for the first quarter of 2011, as compared to net income of $9.5 million for the first quarter of 2010. Net income for the first quarter of 2010 was retrospectively adjusted to increase the gain on acquisitions to $2.7 million. As a result, earnings per diluted share for the first quarter of 2010 as previously reported increased by $0.01.
On a fully diluted share basis, earnings per common share for the first quarter of 2011 were $0.15 versus $0.17 for the first quarter of 2010.
Net sales for the first quarter of 2011 were $124.4 million, a 20.8% increase over net sales of $102.9 million for the first quarter of 2010. Calgon Carbon Japan’s (CCJ’s) sales, which were not reported on a consolidated basis for the first quarter of 2010, accounted for approximately 83% of the increase. Currency translation had a $0.9 million positive impact on sales for the first quarter of 2011 due to the weaker dollar.
For the first quarter of 2011, sales for the Activated Carbon and Service segment increased 24.8% as compared to the first quarter of 2010. The increase was primarily due to the above mentioned CCJ sales.
Sales from the company’s traditional business increased due to higher sales of activated carbon products and services in four of its six market segments: municipal, industrial process, respirator, and environmental water treatment. This increase was partially offset by lower demand in the food and environmental air treatment markets. The decline in environmental air treatment sales was the result of a change in mercury removal requirements in one Canadian province; the temporary shut down of certain customers’ coal-fired electric generating units for maintenance; and one customer’s decision to temporarily shift some production from coal-fired to hydroelectric generating facilities.
Calgon Carbon Corporation 400 Calgon Carbon Drive Pittsburgh, PA 15205 412.787.6700

 


 

Equipment sales declined by 10.3% in the first quarter of 2011 versus the comparable period in 2010, principally due to lower revenue from carbon adsorption systems. This was partially offset by higher revenue from UV systems.
An increase of 2.8% in Consumer sales for the first quarter of 2011 versus the comparable period in 2010 was attributable to higher demand for activated carbon cloth products. The company previously announced its intention to exit the home wellness market where it provides PreZerve® products.
Net sales less the cost of products sold (excluding depreciation and amortization), as a percentage of net sales for the first quarter of 2011 was 33.3%, versus 36.1% for the first quarter of 2010. The decline was primarily due to sales from CCJ and revenue recognized on UV systems whose margins were lower than the overall company average. Lower sales of activated carbon products for mercury removal also contributed to the decline.
Selling, administrative and research (SG&A) expenses for the first quarter of 2011 were $22.5 million versus $19.7 million for the comparable period in 2010. The increase resulted from expenses incurred by CCJ that were not reported on a consolidated basis for the first quarter of 2010. SG&A as a percentage of sales improved to 18.1% versus 19.1% for the first quarter of 2010.
Calgon Carbon’s board of directors did not declare a quarterly dividend.
Commenting on the quarter, John Stanik, Calgon Carbon’s chairman, president and chief executive officer, said, “The first quarter is typically Calgon Carbon’s weakest and should not be indicative of performance for the year. Lower sales of Fluepac® carbons for the removal of mercury had an adverse impact on results for the first quarter.”
“Overall, however, demand for activated carbon increased year-over-year. CCJ’s margins were up sequentially, and we expect continued improvement throughout the year as we conclude the integration process. We continue to believe that in order to meet customer demand in 2011 we will be required to supplement activated carbon that we produce with lower-margin outsourced products. However, margins in our traditional Carbon and Service business should improve as we continue to make progress implementing our pricing and reactivation strategies.”
Calgon Carbon Corporation, headquartered in Pittsburgh, Pennsylvania, is a global leader in services and solutions for making water and air safer and cleaner.
For more information about Calgon Carbon’s leading activated carbon and ultraviolet technology solutions for municipalities and industries, visit www.calgoncarbon.com.
This news release contains historical information and forward-looking statements. Forward-looking statements typically contain words such as “expect,” “believe,” “estimate,” “anticipate,” or similar words indicating that future outcomes are uncertain. Statements looking forward in time, including
Calgon Carbon Corporation 400 Calgon Carbon Drive Pittsburgh, PA 15205 412.787.6700 www.calgoncarbon.com

 


 

statements regarding future growth and profitability, price increases, cost savings, broader product lines, enhanced competitive posture and acquisitions, are included in the company’s most recent Annual Report pursuant to the “safe harbor” provision of the Private Securities Litigation Reform Act of 1995. They involve known and unknown risks and uncertainties that may cause the company’s actual results in future periods to be materially different from any future performance suggested herein. Further, the company operates in an industry sector where securities values may be volatile and may be influenced by economic and other factors beyond the company’s control. Some of the factors that could affect future performance of the company are higher energy and raw material costs, costs of imports and related tariffs, labor relations, capital and environmental requirements, changes in foreign currency exchange rates, borrowing restrictions, validity of patents and other intellectual property, and pension costs. In the context of the forward-looking information provided in this news release, please refer to the discussions of risk factors and other information detailed in, as well as the other information contained in the company’s most recent Annual Report.
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Calgon Carbon Corporation 400 Calgon Carbon Drive Pittsburgh, PA 15205 412.787.6700 www.calgoncarbon.com

 


 

Calgon Carbon Corporation
Condensed Consolidated Statement of Income
(Dollars in thousands except per share data)
(Unaudited)
                 
    Quarter Ended  
    March 31,  
    2011     2010  
Net Sales
  $ 124,380     $ 102,927  
 
           
 
               
Cost of Products Sold
    82,989       65,791  
 
               
Depreciation and Amortization
    5,540       5,077  
 
               
Selling, Administrative & Research
    22,511       19,651  
 
           
 
               
 
    111,040       90,519  
 
           
 
               
Income from Operations
    13,340       12,408  
 
               
Interest Income (Expense) — Net
    45       108  
 
               
Gain on Acquisitions
          2,666  
 
               
Other Income (Expense) — Net
    (190 )     (303 )
 
           
 
               
Income From Operations Before Income Tax and Equity in Income from Equity Investments
    13,195       14,879  
 
               
Income Tax Provision
    4,718       5,515  
 
           
 
               
Income from Operations Before Equity in Income from Equity Investments
    8,477       9,364  
 
               
Equity in Income from Equity Investments
          112  
 
           
 
               
Net Income
  $ 8,477     $ 9,476  
 
           
 
               
Net Income per Common Share
               
Basic and Diluted
  $ .15     $ .17  
 
               
Weighted Average Shares Outstanding (Thousands)
               
Basic
    56,124       55,708  
 
               
Diluted
    56,893       56,725  
Calgon Carbon Corporation 400 Calgon Carbon Drive Pittsburgh, PA 15205 412.787.6700 www.calgoncarbon.com

 


 

Calgon Carbon Corporation
Segment Data:
                 
Segment Sales   1Q11     1Q10  
Activated Carbon and Service
    112,884       90,452  
Equipment
    9,117       10,160  
Consumer
    2,379       2,315  
 
           
 
               
Total Sales (thousands)
  $ 124,380     $ 102,927  
Segment
                 
Operating Income (Loss)*   1Q11     1Q10  
Activated Carbon and Service
    19,067       17,687  
 
               
Equipment
    (382 )     (315 )
 
               
Consumer
    195       113  
 
           
 
               
Income from Operations (thousands)
  $ 18,880     $ 17,485  
 
*   Before depreciation and amortization.
Calgon Carbon Corporation 400 Calgon Carbon Drive Pittsburgh, PA 15205 412.787.6700 www.calgoncarbon.com

 


 

Calgon Carbon Corporation
Condensed Consolidated Balance Sheet
(Dollars in thousands)
(Unaudited)
                 
    March 31,     December 31,  
    2011     2010  
Assets
               
 
               
Current assets:
               
 
               
Cash and cash equivalents
  $ 27,014     $ 33,992  
 
               
Restricted cash
    1,246       1,173  
 
               
Receivables
    91,392       94,354  
 
               
Inventories
    107,801       101,693  
 
               
Other current assets
    39,729       40,836  
 
           
 
               
Total current assets
    267,182       272,048  
 
               
Property, plant and equipment, net
    198,783       186,834  
 
               
Other assets
    42,315       42,681  
 
           
 
               
Total assets
  $ 508,280     $ 501,563  
 
           
 
               
Liabilities and Shareholders’ Equity
               
 
               
Current liabilities:
               
 
               
Short-term debt
  $     $ 21,442  
 
               
Current portion of long-term debt
    2,926       3,203  
 
               
Other current liabilities
    75,138       80,529  
 
           
 
               
Total current liabilities
    78,064       105,174  
 
               
Long-term debt
    24,226       3,721  
 
               
Other liabilities
    49,960       49,430  
 
           
 
               
Total liabilities
    152,250       158,325  
 
               
Redeemable Non-Controlling Interest
          274  
 
               
Total shareholders’ equity
    356,030       342,964  
 
           
 
               
Total liabilities and shareholders’ equity
  $ 508,280     $ 501,563  
 
           
Calgon Carbon Corporation 400 Calgon Carbon Drive Pittsburgh, PA 15205 412.787.6700 www.calgoncarbon.com